Generac Power Systems, a leading manufacturer of portable and standby generators, is experiencing a significant increase in demand following the devastating hurricanes that have struck parts of the U.S. this year. The company, headquartered in Waukesha, Wisconsin, is expanding its workforce and production capacity to meet the surge in orders, driven by consumers preparing for more frequent power outages.
Generac’s CEO, Aaron Jagdfeld, revealed in an interview with Reuters that the company is currently looking to hire 400 new employees to support its growing operations. The hiring push began after Hurricane Beryl, which severely impacted Texas, and has continued in response to Hurricanes Helene and Milton, which recently battered other regions.
The additional workers will primarily fill production roles at Generac’s factories in Wisconsin and South Carolina. These plants are responsible for building both portable and standby generators, the latter of which are permanently installed and automatically activate during power outages.
“We’ve been looking to add 400 people,” said Jagdfeld, highlighting the need for more workers to meet the surge in demand for generators in hurricane-prone areas. He estimated that each major storm generates between $50 million and $100 million in additional sales for the company.
According to Jagdfeld, the demand for residential standby generators is particularly high in states like Florida, Georgia, South Carolina, and Texas, all of which have been heavily affected by hurricanes. He anticipates that the surge in sales could last for the next six to eighteen months, as homeowners invest in backup power solutions to prepare for future storms.
Generac’s business tends to follow a pattern Jagdfeld refers to as a “step-function,” where sales increase sharply following major storms and then gradually decline, but remain at a higher level than before. The company’s growth is being driven not only by the frequency of storms but also by the deteriorating state of the U.S. power grid and increasing consumer reliance on electricity for essential devices and medications.
The rise in demand for generators is also tied to the increasing frequency and intensity of storms, which experts attribute to climate change. As these natural disasters become more common, the reliability of the U.S. power grid has worsened, leading to more prolonged outages.
Generac has been tracking power outage hours since 2010, and Jagdfeld noted that the U.S. saw 1.2 billion outage hours in the first nine months of this year alone, the worst figures recorded since the company began monitoring them.
“The quality of the U.S. power system continues to deteriorate,” said Jagdfeld, emphasizing that the combination of climate change and an aging power grid is likely to fuel long-term demand for backup power solutions.
To accommodate the growing demand, Generac has been expanding its production capacity. Three years ago, the company opened a new plant in South Carolina dedicated to producing residential standby generators. A new facility is also under construction in Wisconsin, which will manufacture larger generators for commercial and industrial use.
However, Hurricane Helene recently caused damage to Generac’s South Carolina plant, tearing off parts of the roof and flooding sections of the facility. Power was out for five days, and many employees were unable to return to work due to personal challenges, including lack of electricity for up to 10 days.
“We struggled to get people back into the factory,” said Jagdfeld, but the company managed to compensate for the lost production by ramping up operations at its Wisconsin plant.
Generac’s growth has caught the attention of investors. The company’s parent firm, Generac Holdings, recently saw its stock reach a two-year high, reflecting confidence in the company’s ability to capitalize on the increasing demand for generators.
With third-quarter earnings set to be reported on October 31, the company’s strong performance is expected to continue, particularly as more consumers invest in backup power solutions in anticipation of future storms and power outages.
Generac’s proactive approach to scaling up its workforce, expanding facilities, and addressing production challenges positions the company well for sustained growth as the need for reliable power solutions becomes increasingly critical in the face of climate change and a vulnerable power grid.
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